Todays Smartest Investors Are Asking about India (not China). According to Sequoia Capital Partner Michael Moritz, the venture capitalist who made 34,000% off Google:

"We can barely imagine investing in a company without at least asking what their plans are for India. India has seeped into the marrow of the valley."

You see... while plenty of Americans know that China is a fast-growing economy, a small group of investors are making seven times more money investing in India. Perhaps its hard to believe -- but the numbers prove it: Manufacturing -- which is Chinas strength -- makes up 41% of U.S. output and 11% of jobs. Services -- which are Indias strength -- make up 55% of the U.S. economy and employ 78% of its workers. India has seven times more impact on the U.S. than China!

But thats just the beginning... Although you wont hear this in the mainstream media, smart investors know that Indian companies return on equity is 21% compared with 10% for China.

The average Indian investment makes double that of the average Chinese investment.

And its easy to see why...

By introducing its one-child policy in 1980, China cut off its future number of young workers to support its aging population. China is growing old before its grown rich.

India is the fifth largest economy in the world (ranking above France, Italy, the United Kingdom and Russia) and has the second largest GDP among emerging nations.

25% of the people in the world under the age of 25 live in India. In fact, 50% of India's total population is under 25... and research shows that younger economies grow faster than their older counterparts.

This proves that India is one of the slowest aging countries in the world with a middle class that exceeds the population of the United States and the European Union!

These powerful demographics are why Michael Moritz, the venture capitalist who made 34,000% off Google, is only investing in companies with business plans involving India. He says, We can barely imagine investing in a company without at least asking what their plans are for India.

Thats why India -- not China -- offers you the safest and most explosive investment opportunity in the world. In fact, Indias cheap, brilliant and highly productive workforce has helped it become the first developing nation in history to use brainpower as its growth catalyst.

Make no mistake: Indias exploding demographic of low-cost, high-IQ, English-speaking brainpower -- without question -- will have a far-reaching impact on your investment dollars.

And even though Indias huge outsourcing boom shows signs of leveling off due to rising wages for local workers and competition from other countries looking to emulate its model, India continues to be the No. 1 country for outsourcing.

According to the National Association of Software and Service Companies (NASSCOM), Indias outsourcing industry is on course to grow at an annual rate of 25% to hit $60 billion in revenue for its software and service exports by 2010!

Whether you regard the trend as disruptive or beneficial, one thing is clear: American companies who have shifted work to India cut costs by 40% to 60%... affecting everything from your tax return to your iPod.

Indian CPAs prepared approximately 360,000 U.S. tax returns for 2006, garnering $40 million in revenue. Indian processing centers allow U.S. banks to process mortgage applications in three hours -- rather than three days. Lehman Brothers, Boeing and the Yellow Pages are using skilled Indian Webmasters to design their interactive Websites. The electronic circuitry in your iPod is also done in India.

Indian financial analysts are examining the latest earnings reports of U.S. companies while Wall Street sleeps, filing their analyses hours before the next trading day. Even the U.S. government uses India to manage its food stamp programs and the U.S. Postal Service!

Soon, India will have the worlds largest population of workers and consumers, igniting a global paradigm shift in the service sector like nothing weve ever seen before.

Just like Wal-Mart drove down costs in retail, Indias services industry will create a consumer economy so far-reaching, itll change business on a global scale.